ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results[1] for the three-month and nine-month periods ended September 30, 2018.

  • Analysts slides – EN – PDF
  • Press release – EN – FR – PDF
  • Analysts Webcast – English
  • Q&A – EN – PDF

Highlights:

  • Health and safety: LTIF rate of 0.62x in 3Q 2018 as compared to 0.71x in 2Q 2018 and 0.67x in 3Q 2017
  • Operating income in 3Q 2018 decreased to $1.6 billion (which includes $0.5 billion impairment primarily related to the Ilva remedy assets sale) as compared to $2.4 billion in 2Q 2018, 26.9% higher YoY
  • EBITDA of $2.7 billion in 3Q 2018, 11.2% lower as compared to $3.1 billion in 2Q 2018, primarily reflecting lower steel shipments (-5.5%) and the negative impact from hyperinflation accounting in Argentina ($0.1 billion); 3Q 2018 EBITDA up 41.8% YoY
  • Net income of $0.9 billion in 3Q 2018 as compared to $1.9 billion in 2Q 2018 and $1.2 billion in 3Q 2017
  • Crude steel production of 23.3Mt in 3Q 2018, up 0.5% vs. 2Q 2018 and down 1.4% vs. 3Q 2017
  • Steel shipments of 20.5Mt in 3Q 2018, down 5.5% vs. 2Q 2018 and down 5.4% vs. 3Q 2017
  • 3Q 2018 iron ore shipments of 14.2Mt (-5.6% YoY), of which 8.5Mt shipped at market prices (-6.1% YoY)
  • Gross debt of $13.0 billion as of September 30, 2018. Net debt as of September 30, 2018 stable at $10.5 billion as compared to June 30, 2018 despite further working capital investment of $1.7 billion; net debt is $1.5 billion lower when compared to net debt as of September 30, 2017

Financial highlights (on the basis of IFRS[1]):

(USDm) unless otherwise shown 3Q 18 2Q 18 3Q 17 9M 18 9M 17
Sales 18,522 19,998 17,639 57,706 50,969
Operating income 1,567 2,361 1,234 5,497 4,200
Net income attributable to equity holders of the parent 899 1,865 1,205 3,956 3,529
Basic earnings per share (US$)[2] 0.89 1.84 1.18 3.89 3.46
           
Operating income/ tonne (US$/t) 76 109 57 86 65
EBITDA 2,729 3,073 1,924 8,314 6,267
EBITDA/ tonne (US$/t) 133 141 89 131 98
Steel-only EBITDA/ tonne (US$/t) 119 127 73 116 80
           
Crude steel production (Mt) 23.3 23.2 23.6 69.8 70.4
Steel shipments (Mt) 20.5 21.8 21.7 63.6 64.2
Own iron ore production (Mt) 14.5 14.5 14.2 43.5 42.9
Iron ore shipped at market price (Mt) 8.5 10.0 9.1 27.7 27.2

Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:

“As anticipated market conditions in the third quarter remained favourable, resulting in significantly improved EBITDA for the first nine months compared with 2017. We continue to see robust real demand and healthy utilization rates across all steel segments.

“We continue to make good progress with the implementation of our Action 2020 plan, which will improve the performance of our existing business and targets further growth in higher added value products. We are also expanding our business through the execution of a targeted and disciplined strategy to create long-term value. Within 6 months of taking ownership of Votorantim we have captured a significant amount of synergies, and have strengthened our long steel business in Brazil. We are confident we will be similarly successful in integrating and delivering rapid improvement at Ilva, Europe’s single largest integrated steel-making facility, which completed today. And in India, we have recently been named the successful bidder for Essar Steel which provides a unique opportunity to establish a meaningful production presence in the world’s fastest growing steel-market.

“The progress the industry and our Company has made is significant but we remain cognizant of the challenges, including continued global overcapacity, and we remain concerned with the high level of imports in various markets. We continue to prioritize net debt reduction and a strong balance sheet to ensure we can prosper in all market conditions.”

Third quarter 2018 earnings analyst conference call

ArcelorMittal management (including CEO and CFO) will host a conference call for members of the investment community to discuss the third quarter period ended September 30, 2018 on: Thursday November 1, 2018 at 10.30am US Eastern time; 2.30pm London time and 3.30pm CET.

The dial in numbers are:      
Location Toll free dial in numbers Local dial in numbers Participant  
UK local: 0800 0515 931 +44 (0)203 364 5807 72199342#  
US local: 1 86 6719 2729 +1 24 0645 0345 72199342#  
US (New York): 1 86 6719 2729 + 1 646 663 7901 72199342#  
France: 0800 914780 +33 1 7071 2916 72199342#  
Germany: 0800 965 6288 +49 692 7134 0801 72199342#  
Spain: 90 099 4930 +34 911 143436 72199342#  
Luxembourg: 800 26908 +352 27 86 05 07 72199342#  

A replay of the conference call will be available for one week by dialing: +49 (0) 1805 2047 088; Access code 522468#

Forward-Looking Statements

This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe”, “expect”, “anticipate”, “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

Footnotes

[1] The financial information in this press release has been prepared consistently with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and as adopted by the European Union. The interim financial information included in this announcement has been also prepared in accordance with IFRS applicable to interim periods, however this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standard 34, “Interim Financial Reporting”. The numbers in this press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers. This press release also includes certain non-GAAP financial measures. ArcelorMittal presents EBITDA, and EBITDA/tonne, which are non-GAAP financial measures and defined in the Condensed Consolidated Statement of Operations, as additional measures to enhance the understanding of operating performance. ArcelorMittal believes such indicators are relevant to describe trends relating to cash generating activity and provides management and investors with additional information for comparison of the Company’s operating results to the operating results of other companies. ArcelorMittal also presents net debt and change in working capital as additional measures to enhance the understanding of its financial position, changes to its capital structure and its credit assessment. The Company’s guidance as to its working capital investment (or the change in working capital included in net cash provided by operating activities) for the full year 2018 is based on the same accounting policies as those applied in the Company’s financial statements prepared in accordance with IFRS. ArcelorMittal also presents free cash flow, which is a non-GAAP financial measure defined in the Condensed Consolidated Statement of Cash flows, because it believes it is a useful supplemental measure for evaluating the strength of its cash generating capacity. Non-GAAP financial measures should be read in conjunction with, and not as an alternative for, ArcelorMittal's financial information prepared in accordance with IFRS. Such non-GAAP measures may not be comparable to similarly titled measures applied by other companies.

[2] At the Extraordinary General Meeting held on May 10, 2017, the shareholders approved a share consolidation based on a ratio 1:3, whereby every three shares were consolidated into one share (with a change in the number of shares outstanding and the accounting par value per share).

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About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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